IDT to acquire PLX in $330 million deal

SAN JOSE, Calif. (AP) — Chipmaker Integrated Device Technology Inc. said Monday that it agreed to buy PLX Technology Inc. for about $330 million in cash and stock.

IDT said the acquisition will help it expand its core serial switching and interface business.

The boards of both companies approved the merger. The deal is expected to close by the end of June.

Stockholders will receive $3.50 in cash and 0.525 shares of IDT common stock for each share of PLX stock outstanding. Based on IDT's closing price on Friday, the total transaction is valued at about $7 per PLX share with a total value of $330 million for the deal.

PLX shares jumped $2.72, or 68.3 percent, to $6.70 in after-hours trading Monday. IDT shares fell 47 cents, or 6.9 percent, to $6.31 in the aftermarket.

IDT expects to reap $35 million annually from the merger by fiscal 2014, excluding transaction costs, with earnings benefiting by the third fiscal quarter of 2013, which ends in December.

Under the terms of the deal, Sunnyvale, Calif.-based PLX may solicit higher bids from third parties until May 30. If it does not consummate the agreement with IDT, PLX will have to pay IDT breakup fees in certain circumstances.